CRYPTO ACADEMY SEAON 3 WEEK 3 ASSIGNMENT POST FOR @yousafharoonohan by @jimah1k
THIS WAS DESIGNED BY ME
Hello guys;
It’s another week of this seasons CryptoAcademy. This weeks lecture was all about. Trustwallet, Metamask, Uniswap & PancakeSwap,How to link Binance smart chain wallet to Binance Exchange.Part#2 our professor @yousafharoonkhan did a wonderful job in his detailed lecture. After reading the lecture notes and doing my own research I present my assignment post for this week.
Question 1
What is Liquidity in PancakeSwap Explain with examples ?and add Liquidity in PancakeSwap and explain all the steps with screenshot.(explain in your own words)
Before We can get a better understanding of this question I am going to explain what liquidity pool is. A liquidity pool is just like a swimming pool but instead of the water in the pool it’s crypto assets. So we can also say a collection of these assets where the user who is the liquidity provider(LP) then provides liquidity in the form of two assets in equal proportion. The assets the LP is going to be providing into the pool in the pancakeswap is called the liquidity. In providing the liquidity of an asset the LP must make sure that one of the assets he is providing is not more volatile because it can lead to impermanent loss, this loss can also become permanent if the LP withdraws his assets when the price of one of the assets goes higher than the other.
An example of liquidity in pancakeswap let’s say the LP or the user wants to provide two assets of CAKE/BUSD into the liquidity pool. The two assets need to be in a equal proportion so if the LP provides $5 of CAKE he should also provide $5 of BUSD into the liquidity pool if you don’t provide the assets of equal proportion let’s say you provided $5 for CAKE and you provide $10 of BUSD you are likely to experience impermanent loss. The LP can earn through trading fees an example below
So let’s say LP provides 5 CAKE and 5 BUSD this liquidity represents 5 tokens in the liquidity pool. In both cases other traders trades their assets for the assets the LP provided. Now the LP will now have a token which is now 5.017 CAKE and 5.017 BUSD. Note that the the trading fee is 0.17% which is added to the tokens provided by the LP.
To be able to add liquidity in pancakeswap you must have a wallet. In this question I will be adding liquidity in pancakeswap with the help of my BSC.
First of all open the official website of pancakeswap you can do so by CLICKING HERE
Make sure your pancakeswap is connected to your wallet(BSC), click on ‘Trade’ which can be found on the left side of the screen and select liquidity.
- Click on ‘Add liquidity’
- Select your currencies you want to add into the liquidity pool, in my case I will be adding CAKE and BNB
- Click on approve cake and confirm on your BSC wallet.
- Confirm supply on pancakeswap and BSC wallet.
- Transaction submitted.
- Below is a screenshot of my liquidity.
Question 2
How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through screenshot. And transfer any coin from Binance exchange to Binance smart chain
- First open your BSC wallet and click on the three dotted lines just by your address name
- Click on wallet direct.
- Click on verify and connect address to be directed to login your Binance account.
- Enter your details to login to your Binance account and click on login.
- Click on connect to wallet on both the Binance exchange and the BSC.
- A unique code is given to help you connect your wallet to the exchange click on sign into wallet.
- Click on bind
- Verify your details.
- Bind successful.
- Open you BSC wallet and select the asset you want to receive from Binance exchange in my case Trx.
- click on receive
- select wallet direct
- click on Trx
- Enter the amount of Trx you want to transfer and click on next.
- Verify by entering the codes sent to you and click on confirm.
- Transaction Confirmed.
Question 3
What is the difference between Trust Wallet and Metamask and which of them is better and why? Explain in your own words.
These wallets are quite similar and a way and are both relatively good in storing over thousands of coins. From the lecture notes given we all know that they are decentralized platforms. On unique feature between these two is their 12 word phrase which shouldn’t be given or showed to anyone apart from the user this helps keeps the assets safe now let’s look at the differences between these two wallets.
| Trust wallet | Metamask |
|---|---|
| Trust wallet is connected to Binance blockchain | Metamask is not connected to the Binance blockchain but rather the Ethereum blockchain |
| Trust wallet can be used on mobile phones if you want to use it on computers you have to connect it to BSC to be able to use it. | Metamask can be used on both devices |
| In terms of transactions fees trust wallet has lower fees | transactions fees in Metamask are higher as compared to trust wallet. |
| Trust wallet also has faster transactions | Metamask transactions aren’t as fast as trust wallet. |
Which is better? And why?
Well looking at the two wallets taking into consideration the differences in terms of transactions speed, fees I think the trust wallet is better than Metamask. Saying this doesn’t mean Metamask is bad. Someone can also say Metamask is better because it runs on both phones and computers but the reason why I say that trust wallet it better is looking at the speed the two wallets execute their transactions trust wallets beats Metamask.
Secondly, Trust wallet transactions fees per each transaction is Lower than the transaction fees Metamask charge and also the trust wallet is very simple to use on phone.
Question 4
What is meant by PancakeSwap and Uniswap?
PancakeSwap is a decentralized platform that was established in the year 2020. Pancakeswap runs on Binance smart chain network since it’s decentralized in nature all transactions do not involve the interaction of any other part, the main aim of the development of pancakeswap is to help users to be able to exchange their assets for other coins. For example I might I have BNB and I want CAKE I can use the pancakeswap to exchange my BNB for CAKE.
Cake price statistics
| Pancakeswap | Statistics |
|---|---|
| Pancakeswap price | $13.70 |
| Price change 24hr | $-0.9221 |
| 24h Low / 24h High | $13.32 /$14.72 |
| Volume / Market Cap | 0.1303 |
| Market Dominance | 0.20% |
| Market Rank | #34 |
Uniswap is also a decentralized exchange platform which also helps users exchange their assets for other coins there differences between pancakeswap is that uniswap runs on Ethereum blockchain. So traders exchanges ERC-20 tokens. This platform was established long before pancakeswap it was developed in the year 2018
uniswap price statistics
| Uniswap | Statistics |
|---|---|
| Uniswap price | $17.30 |
| Price change 24hr | $-1.67 |
| 24h Low / 24h High | $16.78 /$19.10 |
| Volume / Market Cap | 0.04456 |
| Market Dominance | 0.77% |
| Market Rank | #11 |
what is the main difference between them?
| Pancakeswap | Uniswap |
|---|---|
| Pancakeswap runs on Binance smart chain | Uniswap runs on the Ethereum blockchain |
| Pancakeswap traders trade with BEP-20 | Uniswap traders trade with ETH-20 |
| Fees charged for swapping in pancakeswap are Lower | fees charged in uniswap are higher |
When you lunch your uniswap there are some features on it in this task I will be taking you through them.
The first feature on the uniswap is called ‘swap’ with this feature the user is able to exchange one coin to the other of the same value. Note that tokens to be swapped must be ETH-20 tokens
The second feature is called ‘pool’ this feature is where the users can provide liquidity of two assassets into the liquidity pools to earn rewards.
The third feature is called ‘vote’ this feature helps the users of their platform to make decisions by voting. Anytime the platform wants to introduce anything the users are asked for their opinion after that they are made to vote. This voting can be done when only you have the uniswap token the more tokens you have the higher your power to vote.
Also another feature on uniswap is the ‘charts’ this feature is where the users go to see the trends of their tokens. The chart contains prices of the assets as well as the graph of token.
The next feature is ‘about’ this about contains everything you need to know about uniswap the about feature also contains their contact information and social media handles.
The next feature is the ‘token list’ this feature shows the users all the Ethereum tokens the uniswap platform deals in.
Uniswap also has a feature called ‘discord’this feature allows its users to interact with each other and also dark theme feature which allows you to change the appearance of the uniswap.
I will be taking you through features of the pancakeswap
The first feature of pancakeswap I will be talking about is the ‘Trade’ feature which contains three sub features namely exchange, liquidity, liquidity migration.
The exchange feature allows users to swap or exchange a coin to another coin of the same value.
Liquidity feature allows the users to be able to add their assets in the liquidity pool in other to rep the rewards.
The next feature which is the ‘farm’ which also allows the users to stake their tokens
Pool is the next feature you can see in the pancakeswap this feature helps users to stake their assets in any of the listed pools provided
The next feature is ‘prediction’ this feature users that want to try their luck can go and predict whether the price of a pair let’s BUSD/BNB will go up or down.
Lottery is also another feature in pancakeswap this feature users can win assets what happens is that users buy tickets with their assets is your ticket Number is the same us the wining numbers you win the price pool.
Team battle is also another feature where you get to compete with other people to win cake and other cool prizes.
Teams and profile feature contains three sub features namely leaderboards , task center and your profile. The leaderboard contains the teams and members ranking from 1st to the last one
Task center contains your achievements from day one and also your profile.
Which one is better and Why?
For me looking at the two I think pancakeswap is very profitable because let’s take a look at some features of pancakeswap which you can make money with in pancakeswap a feature called lottery and team battle can help the users to win some assets if you look at uniswap those features are not there.
Also the transaction fees in pancakeswap is lower than the fees in uniswap this is also very good if you want to save some money.
Also with the pancakeswap it has a lot of features but with The uniswap it’s features are limited. Anybody looking for the best platform will definitely go for pancakeswap because of the faster transaction at Lower fee also part from staking your assets you can also earn money trough certain features. And that is why I choose it.
Question 5
How to connect PancakeSwap with Metamask
Open your Metamask and click on browser.
Paste this link in the search address
Click on ‘connect’
Click on ‘connect’ again.
Click on ‘Approve’
Wallet successful linked.
BELOW ARE SCREENSHOTS TO GUIDE YOU
Conclusion
This lecture has been very intriguing the trust wallet and Metamask are both very good wallets that can store plenty coins buy I think trust wallet is the beet and I have provided my reasons and also if we look at the pancakeswap and uniswap it is undoubtedly pancakeswap if Only you want to gain a lot of profit I think that’s that everyone wants to gain more rewards. Thank you professor for this wonderful lecture.
Thank you.
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Season 3 | intermediate course class week 3
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